UPDATE 1-Canada Q2 current account deficit narrows to C$17.40 billion

OTTAWA Aug 31 (Reuters) - Canada's current account deficit
narrowed slightly in the second quarter of 2015 to C$17.40
billion ($13.18 billion) on more favorable trade in goods and
services, Statistics Canada said on Monday.

The deficit was greater than the C$16.90 billion shortfall
predicted by analysts. Statscan revised the first quarter
deficit up to C$18.15 billion - the second highest on record -
from an initial C$17.47 billion.

A strong gain in exports in June helped trim the trade in
goods deficit to C$6.74 billion from C$7.07 billion in the first
quarter.

Overall exports of goods edged up C$680 million to C$128.83
billion, largely due to higher prices. Total imports of goods
rose by C$350 million to C$135.57 billion, in part due to higher
shipments of motor vehicles and parts.

The deficit on trade in services shrank by C$240 million to
C$5.49 billion as non-residents increased their spending in
Canada. This reflected the higher number of foreign travelers,
Statscan said.

The deficit on cross-border investment income flows dropped
to C$4.00 billion from C$4.19 billion as earnings by Canadian
investors on their holdings of foreign securities advanced for
the 11th successive quarter.